UK April final manufacturing PMI 47.8 vs 46.6 prelim | Forexlive

• Prior 47.9

That’s a decent revision higher, which sees UK manufacturing activity fall marginally in April as compared to March. That said, it is still in contraction territory with both output and new orders also falling. S&P Global notes that:

“The UK manufacturing sector remained in the doldrums
at the start of the second quarter. Output and new orders
contracted, as manufacturers felt the impacts of client
uncertainty, destocking and tightening cost controls. There
was no escape from the subdued mood of the market, with
both domestic and export customers remaining reticent
to commit to new contracts.

“There was better news on supply chains, as supplier
lead times have now shortened in each of the past three
months, providing welcome news in terms of improved
resource availability and helping drive down raw material
price pressures.

“Better-running supply chains have helped manufacturers
reduce backlogs of orders, accumulated in prior months
amid component shortages. But the concern is that these
backlogs are being depleted, leaving firms with less
work in hand. There may be some light on the horizon,
as manufacturers remain stoically optimistic about the
outlook for the year ahead. Over 60% of firms expect to
expand production over the next 12 months. But demand
will need to pick up in the months ahead to warrant any
increase in production, and with the UK seeing stubbornly
high domestic inflation coupled with a worsening export
trend, risks seem skewed to the downside.”